By serving as a channel for banks to provide trading services to consumers, it seeks to boost consumer confidence in cryptocurrencies.
According to the article, MasterCard will act as a bridge between traditional banks and Paxos, a blockchain infrastructure startup with increasing influence, particularly in Latin America.
It’s important to note that Paxos has previously partnered with PayPal and banks in other countries to make these services possible.
Security and regulatory compliance, two key issues that have prevented legacy financial institutions from participating in the cryptocurrency sector, will be handled by MasterCard.
Additionally, it would ease some consumer worries regarding the developing market. Jorn Lambert, the chief digital officer at MasterCard, stated that roughly 60% of survey participants who have not yet entered the area preferred to do so through well-known traditional banks.
Many consumers are interested in this and fascinated by cryptocurrencies, but they would feel much more secure if those services were provided by their financial institutions. According to Lambert, “It’s a little scary to some people still.”
MasterCard Plans to Start a Service Pilot in Q1 2023 and Expand Worldwide
Significantly, MasterCard intends to launch a service pilot in Q1 2023 with the intention of expanding to various countries around the world.
As noted by the most recent report, the ongoing collaborations between traditional finance and cryptocurrency are ironic, considering that cryptocurrency was designed to upend legacy finance.
These alliances have prospered nonetheless as they increase the popularity of cryptocurrencies while enabling traditional finance to draw in new users.
MasterCard and Binance collaborated to create the Binance prepaid card in Argentina in August, making it simpler to make cryptocurrency payments.
Even as it promises to bring new competition for crypto exchanges, MasterCard’s most recent action may very well serve as the impetus for the next wave of cryptocurrency adoption, which might result in better services for all users.